Hungary as a Bridge: How Could Budapest become a Food Security Partner for the UAE?

Hungary has a strong and well-developed agricultural sector. Arable land and permanent crops account for 4.3 million hectares, of which approximately 130,000 hectares are irrigated. The main crops include wheat (0.9 million hectares), corn (0.8 million hectares), and sunflowers (0.7 million hectares). While pastures cover 0.8 million hectares and forests cover 2 million hectares, livestock production includes 2.8 million pigs and 33.8 million poultry.

The country’s economy is export-dependent, so many technological advancements and the easing of financial restrictions, such as VAT, were integrated across various sectors, helping improve products and increase profits. The agricultural sectors benefited greatly from such policies, where crops and livestock exports have increased throughout the years. Agricultural exports constituted 9.1% of Hungary's total exports in 2024, including commodities like grains and grain products (13%), animal feed (12%), meat and meat products (9%), dairy products (5%), and fruits and vegetables (5%). Hungary's pioneering role in the agricultural sector increases its prospects for adopting measures to address food insecurity while increasing the benefits for any country that cooperates with it.

The United Arab Emirates and Hungary have a strong partnership that extends beyond their traditional geography. Since the establishment of diplomatic relations between the two countries, many aspects of coordination and cooperation have been witnessed in various areas, such as energy, renewable energy, and artificial intelligence (AI). This signals the possibility of extending this type of partnership between Abu Dhabi and Budapest to address a persistent global issue, which is food security.

Hungary has strong agricultural potential, while the UAE positions itself as a gateway to global markets, a tech hub, and a capital provider. Consequently, the two countries exhibit an exceptionally high possibility of food-based partnership compared to the rest of the countries in the region. Budapest can act as a food supply chain connecting Central Europe to the Middle East through Adriatic ports and agri-tech cooperation. At the same time, the UAE ports can act as a link between Hungarian products the Middle Eastern and Asian markets.

Throughout the years, the UAE has become a major trading partner for Hungary in the Gulf, with non-oil bilateral trade reaching 793.7 million USD in 2024, while continuing to grow in the first half of 2025 by 29.4%, accounting for 434.2 million USD. Growing their partnership will likely continue regardless of the change in leadership in Budapest, as their trading interests largely intersect and the potential for more cooperation in food and other sectors is high.

Hungary under Viktor Orbán had strong trade ties with the GCC, where bilateral agreements on space research, economic cooperation, and energy were signed. Electing Peter Magyar as the new Prime Minister of Hungary on April 12, 2026, changing a 16-year leadership of Orbán and the Fidesz Party, could possibly signal an enhanced phase in the Hungarian foreign policy. Magyar and his governing Tisza Party is a centre-right political bloc, which reflects its intention towards an EU rapprochement and a Russia alienation. At the same time, Magyar indicated his party’s plan to adopt a global principles stance in the country’s foreign policy. Hence, Tisza Party is likely to maintain pragmatic economic cooperation with the Gulf states in areas such as trade, investment, and energy.

At the same time, the new government is likely to be open to new opportunities that serve its interests. And under food insecurity threats that reach worldwide, securing a food security-related partnership with stable economies could be an unparalleled prospect. The rationality of strengthening this partnership is driven by the UAE’s pragmatic doctrine in its foreign policy, featuring long-term investments and continuity regardless of political shifts. So, a change from the Fidesz government to a new one is unlikely to challenge the already strong alliance between the two countries.

Serving as the opposition leader in 2025, Magyar has voiced his Party’s plan for a “Hungarian New Deal” focused on economic growth and investment. This agenda signals openness and anti-corruption for the new government. After taking office in 2026, he introduced large-scale policies, including efforts to secure the food system. Tisza’s agenda for agriculture and the economy emphasizes supporting small farmers and small and medium enterprises (SMEs), developing food processing and supply chains, and improving agricultural management and sustainability.

Amidst the rising concerns of global food insecurity by 2050, the UAE and Budapest have the potential to expand their partnership and strengthen it around agri-tech and agri-investment. Hungary has strong agricultural potential, making it a credible partner for food-import-dependent Gulf countries. There are already established economic partnerships that can lay the ground for a food security partnership. Both GCC and Budapest have historically strong relations in several sectors, thus further cooperation to include food agreements is highly plausible, and the UAE has the most potential to be the leading country in such an approach.

The UAE offers the opportunity to link Hungary with the rest of the Middle East and Asian markets. UAE ports and developed logistics networks can act as a gateway for Hungarian agricultural products to reach the Middle East and Asian markets. At the same time, Hungary’s location in Central Europe offers connectivity opportunities. The country is integrated into EU logistics and transport corridors, such as Adriatic ports in Croatia and Slovenia, as well as its own port terminal in Trieste, Italy. This could position Hungary as part of a food supply chain linking the GCC to Europe.

In addition, the UAE is a prominent global economic destination. The UAE has a competitive legislative environment that supports businesses’ establishment and investments. Despite Hungary’s significant potential in agri-food, it still faces structural gaps. Hence, the country can benefit from the UAE’s technological advancements and scientific capabilities and integrate them into its agri-tech corporations. The UAE can invest in agricultural technology and share expertise.

There is already a commitment from both sides to deepen cooperation in agriculture and food security, which constitutes a base for a future framework for collaboration. In June 2024, the UAE and Hungary signed a Memorandum of Understanding (MoU) between the Ministry of Climate Change and Environment and the Hungarian Ministry of Agriculture. One of the primary objectives of this agreement is to strengthen agricultural cooperation through capacity building, exchange of expertise and best practices in the agricultural sector, as well as the localisation of innovations and technologies in various areas of agriculture.

On the other hand, around half of Hungary’s land is agricultural, with diversified crops such as maize, wheat, corn, and livestock. Agriculture and food-related sectors contribute significantly to exports, while agriculture, food, and environmental biotechnologies are growing and expected to further advance. Whereas the GCC faces some challenges in planting their own crops due to water scarcity, limited arable land, and arid terrain. Nevertheless, they acquire the innovation and investment resources needed for future agri-food system advancements.

The UAE market is experiencing significant demand for diverse, healthy, and sustainable food options due to the country’s growing food and foodservice industries. For instance, Emirati’s foodservice market is projected to reach 41.80 billion USD by 2033, jumping from 15.90 billion USD in 2024. Consequently, the reciprocal importance is the key factor in building a strong partnership for achieving food security, and the available paths for future partnership are numerous. The UAE’s strong economy and innovation environment can likely collaborate with Hungary’s growing food technology, creating a secure and sustainable agri-food system.

By 2027, GCC food consumption is projected to grow at a compound annual growth rate (CAGR) of 2.8%, reaching 56.2 million tonnes, compared to 49.1 million tonnes in 2021, according to the IMF. Under such circumstances, the GCC plans to diversify its food import strategies to ensure the sustainable flow of food trade and avoid global supply chain disruptions.

Among these strategies, the UAE stands out for its ambitious national food security plan. In accordance with the UAE 2051 food security strategy and its goals to triple food production by 2030, the UAE plans to develop international partnerships to diversify its food sources. Expanding towards Central Europe, where Hungary seems to be a prominent partner, can likely contribute to the UAE plan, and the rest of the GCC could likely follow through.

Budapest could become a food security partner for the UAE and the broader GCC by the Emirates’ investing in Hungary’s food and agriculture technology, utilising its logistics hubs for re-exporting Hungarian products or facilitating the opening of AgTech and F&B-Tech (food and beverage tech) Hungarian firms’ branches in Dubai, and exchanging expertise in smart technologies for farming.

Hungary could connect Europe with the GCC, especially the UAE, through similar bilateral agreements that the UAE has made with other trade partners. The UAE’s first Comprehensive Economic Partnership Agreement (CEPA) was signed with India on 18 February 2022 to improve market access for UAE and Indian products and eliminate tariffs on about 90% of traded goods. Additional CEPAs were signed with countries such as Israel, Türkiye, Georgia, and Serbia. Notably, the UAE-India and UAE-Israel CEPAs enabled the UAE, Israel, and India to establish trilateral cooperation on July 14, 2022, to develop the India-Middle East Food Corridor. The Corridor links Indian farmers to UAE ports, which serve as a distribution hub, while the UAE invests in the construction of food parks in India that utilise advanced agri-tech, clean tech, and renewable energy technologies from Israel and the United States.

Similarly, the UAE could sign a CEPA with Hungary to boost business opportunities in food security, then pursue bilateral or quadrilateral agreements with another Middle Eastern or European country to develop a Hungary-GCC Food Corridor. These agreements will likely include:

1. Lower or eliminate tariffs on mutually traded products,
2. Expand market reach and improve supply chain to Asian markets and Central Europe,
3. Foster a favourable business environment for UAE investors in Hungary and vice versa, and
4. Support AgTech and F&B-Tech Hungarian firms to establish offices in the UAE.

As a result, the UAE-Hungarian partnership will likely witness bilateral agri-investments in smart farming, food processing, food manufacturing, or joint ventures. Hungary is experiencing rapid growth in its agricultural and food and beverage technology environment, with many companies focusing on precision agriculture, AI-powered crop monitoring, supply chain transparency, and sustainable food waste solutions. While the UAE has established itself as a hub for growing Small and Medium enterprises (SMEs), including AgTech and Food-Tech (F&B-Tech) start-ups. Hence, these strategic investments – besides being plausible – stabilise prices, ensure high-quality products tailored to the region’s needs, for example, halal food production for Gulf markets, and mitigate risks associated with supply chain disruptions.

Moreover, the two countries will likely have a strong agri-tech cooperation in the irrigation, storage, and sustainability sectors. This cooperation may feature joint Research and Development (R&D) exchange of expertise in food processing and storage, sustainable food production, and water management. This will allow the UAE to localize high-quality goods production and secure a sustainable supply. Also, the UAE ports will act as a gateway for Hungarian products to reach the rest of the Middle East and Asian markets, hence, ensuring an intact food supply chain.

In sum, a UAE–Hungary cooperation in food security holds significant potential. Realizing it, however, depends on structured, mutually beneficial agreements in food and agricultural technology that leverage both countries’ capabilities. Expanding bilateral trade and cooperation through a CEPA is expected to strengthen food production, diversification, and investment opportunities. Finally, these efforts combine to build a resilient food system for both countries.

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